INTERNATIONAL TAX PLAZA - The OECD published the comments it received on its public consultation of July 17, 2023 regarding Amount B of Pillar One

On September 20, 2023 the OECD published the comments it received on its public consultation of July 17, 2023 regarding Amount B of Pillar One regarding the simplification of transfer pricing rules.

The OECD received over 70 reactions on its consultation. The reactions can be downloaded here. The comments come in the form of a Zip file (18MB) and can therefore be best opened from a computer.

In the public consultation of July 17, 2023 Members of the Inclusive Framework invited input from stakeholders on the following elements:

1. The two alternatives to scope that are presented in this document, which broadly represent the current positions of jurisdictions when considering these issues:

“Alternative A”, which does not require a separate qualitative scoping criterion to identify and exclude non-baseline contributions, and “Alternative B”, which does require a separate qualitative scoping criterion to identify and exclude non-baseline contributions (in scoping criterion 9.a). Text specific to each alternative is included in the document, italicised and in square brackets. Text specific to Alternative A is included in [blue font], whereas text specific to Alternative B is included in [green font]. Moreover, while two alternatives are currently presented with respect to the inclusion of a separate qualitative criterion, this does not preclude the possibility that either alternative might be modified; aspects of the two alternatives might be combined; or that another alternative may ultimately be chosen as the means to determine scope for Amount B, based on stakeholder input and further work to be performed.

2. The appropriateness of:

a. the pricing framework, including in light of the final agreement on scope;

b. the application of the framework to the wholesale distribution of digital goods;

c. country uplifts within geographic markets; and

d. the criteria to apply Amount B utilising a local database in certain jurisdictions.

More information as well as a link to the publication document as released by the OECD on July 17, 2023 can be found here in our article from July 17, 2023.

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